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HMRC internal manual

PAYE Manual

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HM Revenue & Customs
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Employer returns: capture employer return - 2005 onwards: capturing annual returns - 2005 onwards

Notes: 

1. This subject should be used for tax years 2004-05 onwards.
   
2. Reference to CIS in this information applies to the old CIS scheme for to years up to April 2007, when ‘New CIS’ was introduced.

This subject consists of the following

 

Background

It is vital that the details reported on a return are captured accurately.

All returns must be captured on the Employer Business Service (EBS) using Function CAPTURE EOY RETURN DETAILS.

The function may be used to capture details for any tax year between CY-1 and CY-6 inclusive or for earlier years between CY-7 and 1990 inclusive.

Capturing P35 charge on ETMP

Where you have a P35 return captured on EBS for tax years 2013-14 onwards you will be required to manually capture the charge in ETMP. To do this, follow guidance at PAYE43210.

Return types

There are various methods an employer can use to submit returns that make up the EOY series. These are

  • Manually by sending a paper return
  • By magnetic media
  • Filing online using PAYE Online for Employers - Internet (formerly known as FBI) or PAYE Online for Employers - EDI (Electronic Data Interchange)

Note: From tax year 2004-05 every large employer and from 2005-06 every medium employer is required to file their return online either by EDI or Internet.

The details of returns submitted by employers are captured on EBS as one of following basic return types

  • CIS36 - A contractor return including return type SC35, is only captured on EBS for years up to 2007
  • P35 - All other returns are captured under this return type (including magnetic media submitters from 2004-05)

For tax years 2004-05 onwards returns are classified in one of five ways

  • An Original Complete
  • An Original Part P35
  • An Additional Complete
  • An Additional Part P35
  • A Correction

Details of a captured return are sent, usually overnight, from EBS to BROCS and ECS.

Capturing correction returns

The definition of a correction return has changed for tax years 2004-05 onwards because of changes made to accommodate new functionality in ERIC. (During the 2010-11 tax year, ERIC was superseded by ChRIS (Channel Routing Interface Service)). A correction return refers to changes made to the details captured so that it correctly reflects the return the employer submitted originally. A correction may be needed as a result of a misreading of numbers or miskeying of figures when the return was originally captured.

A correction return is never recorded as received, and therefore cannot be linked.

Further information can be found in ‘Capture correction returns - 2005 onwards (Action Guide)’ at PAYE43013.

Capturing multiple returns

An employer is required to send one complete return (in any number of parts they choose) in any given year for the same employer record, except for employer records set up as PSC scheme types where a P35 and a CIS36 are expected for years up to 2007.

Capturing pro forma returns

A pro forma return is captured on behalf of the employer, but has not been completed by the employer. The return is usually created by a Debt Management Office, or Processing Office to enable capture of return or return part information from an employer’s incomplete or missing records.

For the tax years 2004-05 onwards pro forma returns must be recorded as received prior to capture, and when captured must be linked to the recorded as received return.

Further information can be found in ‘Capture pro forma returns - 2005 onwards (Action Guide)’ at PAYE43015.

Note: When a return received by PAYE Filed Online - Internet fails the quality checks in ChRIS, corrections are made by CEPT. The correction pro forma return will be shown on EBS as a paper return, even though the original return was submitted electronically. In Function VIEW EOY RETURNS HISTORY the office number for these returns will start with 2859XX.

Employers completing a magnetic media return

For tax years from 2004-05 there is no separate form P35MT for magnetic media submitters. Employers who choose to remain within the magnetic media scheme can still submit P14 information to NICO by magnetic media, but they must now complete a standard form P35 in place of form P35MT.

PSC scheme types

For years up to 2007 employers who employ both employees and subcontractors are required to complete both a P35 and a CIS36 annual return.

For tax years from 2004-05 to 2006-07 these returns must be captured as two separate returns onto EBS.

The first return must be captured as the original return

  • Where this is the P35 the return class will be Original Complete or Original Part P35
  • Where this is the CIS36 the return class will be Original Complete

The second return must be captured as an additional return

  • Where this is the P35 the return class will be Additional Complete or Additional Part P35
  • Where this is the CIS36 the return class will be Additional Complete

Exceptions to capturing a return

A return cannot be captured if any of the following apply

  • The employer reference cannot be found
  • A Banking Operations Accounts Office Reference is not held on the EBS record
  • The scheme was ceased or cancelled in a previous year
  • The year has been cleared dormant
  • The start date is later than CY-1
  • The scheme was transferred out, succeeded by or merged out in a previous year
  • The year has been cleared cancelled one year only
  • No return of that type in that year has been recorded as received
  • For an ‘Original Complete’ return an ‘Original Complete’ has already been captured for that year
  • For an ‘Additional Complete’ return, no ‘Original Complete’ return has been captured
  • If a negative amount is entered in the ‘Total NICs’ box (box 3 on P35)
  • Maximum number of receipts already recorded
  • The submission type selected is not consistent with the entry on EOY return details

‘Capturing return - 2005 onwards (Action Guide)’ at PAYE43012 explains how to capture a return and what checks are required before and after capture.